Milwaukee Biz Blog

The prevailing perception around these parts is that Milwaukee has no chance of being the home for the corporate headquarters when Miller Brewing Co. and Molson Coors Brewing Co. merge their U.S. forces.

After all, Molson Coors vice chairman Pete Coors, who will serve as chairman of MillerCoors, said the future headquarters will probably located in a "neutral" city other than Milwaukee or his hometown, Golden, Colo.
The Denver Post reported that the cities being considered for the new MillerCoors headquarters include Chicago, Kansas City, Dallas, Atlanta, New York and Des Moines.

Still, that isn't stopping the folks at the Milwaukee 7, the Metropolitan Milwaukee Association of Commerce, Milwaukee Mayor Tom Barrett and Wisconsin Gov. Jim Doyle from continuing their efforts to convince the merged brewer to come to a town that has marketed itself as "Brew City" for decades.

The M7 is bringing the international site selection team of Deloitte LLP to our fair city this week to evaluate our region and provide insight about how it should market itself to companies that may be considering Milwaukee as an option for corporate headquarters.

Steve Baas, governmental affairs director of the MMAC, said the Deloitte team will be here today and Friday, sizing up the region's assets and making note of its weaknesses.

"We have them coming in to look at what we're pitching, to coach us up," Baas said. "You could call it due diligence, but it's much more than that. It's a great opportunity."

The M7 folks will use the feedback as they continue to make their case to MillerCoors and as they pitch Milwaukee to other corporations in the future, according to Pat O'Brien, executive director of the M7.

Deloitte had provided some consultant work related to the formation of the M7, which then invited the company's site selection team to hold its annual meeting here, O'Brien said. While they're here, the dozen-or-so members of the team are going to size up Milwaukee.

MillerCoors officials have been mum about their progress in determining the location of their combined headquarters, because they are awaiting the U.S. Department of Justice's antitrust review of the corporate marriage, O'Brien said. He said the government's decision is expected in June.

Ultimately, Milwaukee might need to come up with a new identity to supplant the "Brew City" moniker. After all, if Miller goes the way of Pabst, Blatz and Schlitz, the only thing left will be a collection of nice local microbreweries.

Still, the M7 has not given up on the notion of convincing MillerCoors to put its headquarters here, Baas said. The Milwaukee team will "dot every i" and "cross every t" until a decision is made, he said.

Baas acknowledged that a pessimist may believe the cause is lost. He said an optimist may believe Milwaukee still has a chance. But a realist believes Milwaukee must make its best case and let the chips fall where they may, he said.

In other words, the M7 gang is going to swing hard, in case it hits something.

Steve Jagler is executive editor of Small Business Times.

The past few months have seen much debate over the 27th Street exit on Interstate 894 as part of the Wisconsin Department of Transportation’s reconstruction and expansion project of I-94 from the Mitchell Interchange to the state border.

The debate is an important one, impacting people's homes and businesses. With much at stake, the debate has become understandably heated. The problem with heated debates, however, is that often times facts get fried.

First and foremost, there is a belief that as a result of this plan, the 27th Street exit will be closed completely. This statement is misleading and fails to tell the whole story.

While it is true that the exit to 27th Street along westbound I-894 for traffic coming from the south will close under current WisDOT plans, all other access to South 27th Street will remain as it does today. As the Small Business Times reported in the BizTimes Real Estate Weekly bulletin, “Southbound traffic coming from the downtown area and eastbound traffic coming from the west would still be able to exit at 27th Street.” Businesses and homes along 27th Street will remain completely accessible to those exits.

This is an important point, because the access points that will remain open to 27th Street are those most heavily traveled. According to information from our city engineer, approximately 16,000 vehicles exit I-894 via S. 27th Street every day, but only 1,500 of those cars – less than 10 percent - utilize the exit that would be closed.

This means the vast majority of vehicles that currently use the 27th Street exit to reach the homes and businesses along this corridor will still be able to under the current plan.

Second, I cannot support a plan that destroys people's homes. The alternate proposal WisDOT considered in an effort to maintain full access at South 27th Street would have required the demolition of ten single-family homes and two 8-unit apartment buildings.

Forcing people from their homes and reducing the city’s property tax base are not alternatives I can support. That is why I have - from day one of this project - urged the state Department of Transportation to design a freeway that not only improves safety and the flow of traffic, but one that avoids the destruction of people's homes.

Which leads to the third and final point: the City of Milwaukee has been engaged throughout this process and has consistently urged WisDOT to produce a plan for 27th Street that is fair to business owners and residents in the area. My commissioner of public works and my city engineer made this point in a letter to WisDOT on Aug. 21, 2007, and in conversations throughout the 27th Street debate. My message has been perfectly clear: keep 27th Street fully open, AND don't destroy people's homes.

Any suggestion that the City of Milwaukee has not fought for this issue is either unfair or uninformed. I understand that when people's businesses and homes are involved, debate can become heated and facts can get fried. But cooler heads must prevail.

As mayor, I will continue to push WisDOT for a plan that keeps all of 27th Street open AND saves people's homes. Those who agree should stand with me.

Tom Barret is the mayor of Milwaukee.

Tuesday's announcement that the United States Bowling Congress (USBC) is leaving the Milwaukee region and relocating to Arlington, Texas, is a disappointment, but not a shock.

The City of Milwaukee and the City of Cudahy, respectively, put together highly competitive financial packages to keep the USBC here. The State of Wisconsin and Visit Milwaukee are also to be commended for their significant contributions.

All stepped-up to keep the USBC here. If this were about simple economics, the announcement Tuesday would likely have been different.

The reality is that the USBC wanted to join forces with the Bowling Proprietors' Association of America, a separate bowling organization which is already located in Arlington. It was an internal strategic decision.

Our efforts gave the USBC reason to seriously reconsider what appeared to be a done-deal a couple months ago.

The M-7 proposal was aggressive, thorough and timely.  

The region lost one Tuesday, but let's not forget the bigger picture. We have a deep, diverse economy with one million jobs and 52,000 businesses.

There are going to be wins and losses … and we've had our share of the former. M-7 wins include 10 corporate expansions or relocations that have created/saved 3,600 jobs with $323 million in direct and indirect payroll.

Recent successes include:

• The Gehl Co.'s $20 million headquarters expansion and new R&D facility in West Bend, with 190 jobs retained and 90 to be added.
• C&D Technologies' new multimillion-dollar battery research facility planned for Milwaukee, an investment of $19 million, with 150 new jobs to be added.

Companies like Gehl and C&D epitomize the future we are building - technology-intensive companies that export their goods and services outside the region, thereby bringing jobs, capital and investment into the region.

 

We aren't happy with the USBC's decision, but nobody here is hanging their head. 

Jim Paetsch is director of corporate expansion and relocation for the Milwaukee 7. For additional information, visit www.choosemilwaukee.com.

In 1998, when the U.S. Women's Open was held at Blackwolf Run in Kohler and Whistling Straits was opening, it appeared that Wisconsin was on the verge of becoming a major player in the world of championship golf.

But did any one back then even dream that southeastern Wisconsin would become the golf championship hot spot that it has?

Consider, in addition to hosting the 1998 U.S. Women's Open, Blackwolf Run will host the 2012 U.S. Women's Open. Whistling Straits, located in Haven just north of Sheboygan, hosted the 2004 PGA Championship, the 2007 U.S. Senior Open, and will host the 2010 and 2015 PGA Championships and the 2020 Ryder Cup. Erin Hills, which opened in 2006 in the Washington County Town of Erin, will host the U.S. Women's Amateur Public Links this year and the U.S. Amateur in 2011.

Robert Lang, who developed the course, hopes to one day bring the U.S. Open to Erin Hills.

In addition, the U.S. Mid-Amateur will be held at the Milwaukee Country Club this year.

These tournaments provide a huge benefit to the region's economy. The U.S. Women's Open, the U.S. Amateur, the PGA Championship and the Ryder Cup are broadcast on national television. When golf fans watch those events, the televised images of beautiful Wisconsin golf courses help shatter the myth that this state is nothing but frozen tundra. The tournaments also bring big crowds to fill hotel rooms and restaurants.

But even after they are over, the exposure and the prestige of these events attracts travelers to Wisconsin to play at these elite golf courses. The parking lots at Blackwolf Run and Whistling Straits are always filled with several vehicles bearing Illinois license plates. Even before it has hosted a major event, Erin Hills attracted golfers from 40 states last year, as a result of overwhelmingly positive buzz in the golf world.

How did all of this happen? How did southeast Wisconsin become a major golf destination? The props go to three people: Mother Nature, Herb Kohler and Bob Lang. Mother Nature provided the beautiful terrain, and Kohler and Lang provided the vision and the resources to mold the land into breathtaking gold courses.

In the beginning

It all started in the 1970s, when the Kohler Co. was trying to figure out what to do with an old brick building that was built in 1918 to provide hosing for the company's immigrant workers.

Herb Kohler, the company's president and chief executive officer, rejected the advice of consultants and the preference of his own board of directors and transformed the building into a first-class resort called the American Club, which opened in 1981.

The American Club was a big success. Many guests at the hotel liked to play golf and would go play at courses in the Sheboygan area, and they suggested that Kohler Co. build its own course. Kohler saw an opportunity, so he built Blackwolf Run, which opened in 1988. The course was designed by Pete Dye, one of the best golf course architects.

Ten years later, Blackwolf Run was the host of the U.S. Women's Open. I helped cover that event as a reporter for The Sheboygan Press. It was a huge success for Kohler, with record-breaking crowds and a thrilling ending. Jenny Chuasiriporn, a college kid and an amateur, hit a 40-foot putt on the 18th hole to force a playoff with Se Ri Pak. The huge crowd around the 18th green exploded in cheers as if they had just seen a last-second, game-winning Packer touchdown. Chuasiriporn's jaw dropped, and she put her hand over her mouth as if to say, "Oh, my God! What did I just do?"

It was a classic, but underappreciated moment in Wisconsin sports history. However, the next day, Pak beat Chuasiriporn in an 18-hole playoff.

Kohler looked like a proud papa the whole weekend, and not just because of the U.S. Women's Open. During the tournament, he unveiled his newest crown jewel with the opening of Whistling Straits.

Kohler and his friend, former President George H.W. Bush, played the first round at the course, located along the Lake Michigan bluffs north of Sheboygan, before heading to Blackwolf Run to watch the U.S. Women's Open.

Backroom bargaining

Once it opened in 1998, Whistling Straits was immediately considered one of the best golf courses in the country. Its spectacular lakefront setting earned rave reviews.

The success of the U.S. Women's Open in 1998 and the quality of Whistling Straits put Kohler in a great position to negotiate with the United States Golf Association (USGA) and the Professional Golfers' Association (PGA) for a major championship.

Kohler was in talks with the USGA to have Whistling Straits host the 2005 U.S. Open. The U.S. Open may be the biggest men's golf major of them all.

However, the PGA beat the USGA to the punch. The PGA offered to pull its 2004 PGA Championship from Valhalla Golf Club in Louisville, Ky. and award the tournament to Whistling Straits instead.

With a bird in his, Kohler decided he couldn't turn down the 2004 PGA Championship on the chance that he would get the 2005 U.S. Open, and the events were too close together to try to host both. So, Kohler accepted the PGA's offer.

The move by the PGA hurt some feelings in Louisville, but the 2004 PGA Championship was another huge success for Kohler, with an attendance record and another championship tied after 72 holes. Vijay Singh won a three-hole playoff with Justin Leonard and Chris DiMarco.

After the tournament, speculation again heated up about what would be the next championship hosted by a Kohler golf course.

The USGA awarded Whistling Straits with the 2007 U.S. Senior Open. Golf legend Tom Watson appeared poised to win, but he faded, and the tournament was won by Brad Bryant.

In an apparent attempt to box the USGA out of Whistling Straits, the PGA made a blockbuster offer to Kohler, awarding the course with the 2010 and 2015 PGA Championships and the 2020 Ryder Cup. Reminiscent of Valhalla, the PGA pulled the 2010 PGA Championship from Sahalee Country Club near Redmond, Wash., and moved it to Whistling Straits.

Lang's bold venture

Meanwhile, as Whistling Straits was hosting the 2004 PGA Championship, Robert Lang, a developer and the former owner of the Lang Cos., was making plans to build a golf course in southwest Washington County that he dreamed would one day host the U.S. Open.

At first, Lang was planning to build a nine-hole golf course on the property located west of Holy Hill. Because he was not a serious golfer, Lang did not fully realize the potential of the undulating Kettle Moraine property that had been carved by glaciers.

"I just thought it was pretty land," Lang told SBT in an Aug. 19, 200,5 cover story on the building of Erin Hills.

He sent topographical maps to some of the top golf course architects in the nation. The architects were very excited about the property's potential. Then Lang realized he had a chance to build a special golf course. He hired Michael Hurdzan and Dana Fry of Columbus, Ohio-based Hurdzan-Fry golf Course Design Inc. and Golf Digest golf course architecture writer Ron Whitten to design Erin Hills.

The buzz about Erin Hills and its beautiful natural setting spread quickly in the golf world. Even before it was open, USGA officials toured the property and began considering it for future championship events.

The course was awarded this year's U.S. Women's Amateur Public Links before it even opened.

When it did open on Aug. 1, 2006, Erin Hills was a major hit. The course received so much positive press that in 2007 golfers from 40 states came to Wisconsin to play at Erin Hills. Golfers from 20 states have already made reservations to play there this year, Lang said.

The course recently was awarded the 2011 U.S. Amateur by the USGA.

Most major golf championships are played at courses on the coasts, but there are a lot of golfers and golf fans in the Midwest, and once in awhile the PGA and USGA need to bring their championships to flyover country. The PGA seems to have established Whistling Straits as its top Midwest site for championship tournaments. It's starting to look like the USGA may do the same with Erin Hills.
Speculation has already begun about if and when Erin Hills will get to host the U.S. Open. If this year's U.S. Women's Amateur Public Links and the 2011 U.S. Amateur are successful, Lang should achieve his ultimate goal.

Andrew Weiland is the managing editor of Small Business Times.

Today marks the 64th anniversary of Groucho Marx's live broadcast of his "Pabst Blue Ribbon Town" radio program from Milwaukee.

Marx came to Milwaukee on Feb. 5, 1944, to broadcast his show from the old Milwaukee Auditorium. His special guest in that episode was actress Gene Tierney.

In 2004, Small Business Times conducted research to provide context for several historical photographs found at the former Pabst Brewing Co. headquarters in downtown Milwaukee.

Selfishly, solving the mystery of the story behind the photographs and tracking down a recording of that Milwaukee broadcast was one of the coolest moments of my journalism career.

Jim and Karen Haertel, the original investors in the Pabst Brewery site redevelopment site, had found the photographs in 2004 amid the rubble that was left behind when the owners of Pabst fled Milwaukee in the middle of the night.

The old photographs included images of Marx, actor Danny Kaye and others as they entertained Frederick Pabst Jr., former chairman of the board of the Milwaukee brewing company. In one of the photos, Marx is seen without his trademark fake bushy mustache and eyebrows.

But what was Marx doing at the Pabst brewery?

Several weeks of research later, I discovered that the radio episode, which aired for the Columbia Broadcasting System (CBS) and was broadcast locally on WISN-AM, was devoted to Pabst's 100th anniversary.

The validation came from East Coast old-time radio aficionado Wayne Boenig, who also provided a copy of the original radio broadcast to SBT.

 

The dialogue of the old radio show is classic Groucho schtick:
Co-star Fay McKenzie says to the host, "Oh Groucho, look, there's Lake Michigan! My, it's choppy today. See all the whitecaps."
In his trademark sarcastic tone, Groucho replies, "Yes, isn't it wonderful? You get near the place where they make Pabst beer, and even the lake has a head on it."
The Milwaukee crowd erupts in laughter and applause.
Announcer Durward Kirby then interrupts the skit to promote Pabst and its 100-year anniversary, in a pitch that seems eerily ironic today, given the brewer's demise a half-century later.
"We don't want to get too serious at our 100th anniversary celebration here at Milwaukee. It'll be a long, long time before our next 100-year party. But there's one thing we do think we ought to say. For a full century, our company has grown and prospered because we've always brewed and sold quality beers. Beers that were honestly made. Beers that were honestly sold. Premium beers that have made fast and loyal friends all over the world," Kirby tells the audience. "Today you enjoy beer that all our 100 years of brewing skills can produce. Pabst Blue Ribbon, a delicious blend 33 fine brews with a smooth, satisfying flavor that only full-flavor blending can achieve. And now, as we enter our second hundred years, we want to reaffirm our pledge and our promise, that whenever you buy Pabst Blue Ribbon beer, wherever you buy it, it will continue to be the finest beer we know how to make. Rich and smooth and mellow. A master blend of fine ingredients and a century of skill. A beer to order with confidence and served with pride. That is Pabst Blue Ribbon."

To view vintage photographs from the Marx visit to Milwaukee, visit http://www.biztimes.com/news/2004/3/19/rediscovering-our-blue-ribbon-past.

To hear the recording of the original 1944 broadcast, visit http://www.biztimes.com/news/2004/3/19/hear-the-1944-broadcast.

Prost!

Steve Jagler is executive editor of Small Business Times.

Editor's note: The following blog was written by Milwaukee Mayor Tom Barrett in response to comments made by five local chief executive officers during a Public Policy Forum last Thursday. The comments, which criticized Milwaukee as a place to do business, were summarized in a Milwaukee Biz Blog written by Small Business Times executive editor Steve Jagler last Friday.

 

I don't believe we are "own worst enemy." We have leaders in business, higher education and government who not only call Milwaukee home but who work tirelessly to move Milwaukee forward.

In the last three-and-a-half years, we have seen, first-hand, the results of true partnerships.

Despite the City's limited capital and operating funds, I have been aggressive in the use of Tax Incremental Financing, New Market Tax Credits and Renewal Community Grants. We have made substantial investments in retaining and attracting companies that add value to our community. Companies like Manpower, Direct Supply, and DRS. We have turned around the Menomonee Valley, and we have a large investment in the revitalization of the old Pabst Brewery site. As I write this, the City is preparing an investment strategy for the 30th Street Industrial Corridor (see this week's cover story in Small Business Times).

We are on the move with a new School of Public Health, the Harley Museum and millions of dollars being invested in the Fifth Ward, Mitchell Street and Bronzeville.

None of the above would have happened without a firm belief that Milwaukee is a good place to invest, a place to call home.

I have sought to increase the pool of qualified workers by investing in programs that improve workforce development. In 2006, I utilized the City's Development Fund to make a grant to Bucyrus International to fund job training for welders. 

Last year, I requested the City of Milwaukee be designated the lead on Workforce Development for our region and am working hard to link employers to area residents in need of family supporting jobs.

I too believe that we need to invest in regional transportation. Milwaukee and the region would benefit from commuter rail, fast trains and an overhaul of local transit systems.

But Milwaukee is not in China, where the national government not only holds the power of the purse but also the power of the infrastructure investment decisions.

For Milwaukee and our region to move forward on a multi-modal investment strategy, we're going to have to follow the lead of Atlanta, Phoenix and a host of other metro-regions where business leaders and elected officials invested time, money and talent in a concentrated effort to move multi-modal, regional  transportation from the idea stage to reality.

Our regional economy does not operate according to municipal boundaries. That's why I've invested greatly in building a regional approach. The Milwaukee 7 is a comprehensive approach to integrating public and private economic development tools that will aid the region in recruitment, retention, attraction and expansion of business.

 

The City and region have multiple challenges and issues that we must continue to address. We will move forward. We have the resources and the will to do so. And, despite a few comments made at a luncheon, we are poised for a greater and better future.

 

To those who want to accept that challenge, my door is open.  I would welcome the help in fighting for an improved business climate for our city where we could more easily attract, retain and expand job opportunities.

 

Tom Barrett is the Mayor of the City of Milwaukee.

The Menominee Indian Tribe of Wisconsin is holding steadfast in its determination to develop a new casino at Dairyland Greyhound Park in Kenosha, but a member of its partnering tribe on the East Coast is expressing growing concerns about the likelihood that the project will ever see the light of day.

The Menominee's partner for the Kenosha project is the Mohegan Tribe of Connecticut.

Mohegan author Ken Davison publishes "Feather News," which is a blog of "Independent News For Mohegans By Mohegans." In last Saturday's edition, Davison wrote a blog headlined, "Interior Delivers Blow To Tribe's Diversification Program."

Davison noted that the U.S. Department of Interior last week issued new policies that will further restrict the ability of Indian tribes to add land for casinos to their reservation land-base if the properties aren't close to their reservation.

The Interior Department subsequently denied at least 11 applications that were either incomplete or were awaiting decisions.

The Kenosha project was not among those plans that were rejected. However, Davison expressed concerns about the precedents set by the new policy and the latest rulings.

"While applications from the two tribes that are partnering with the Mohegans are not yet close to reaching the final decision stage, the new policy may not even permit the Wisconsin casino land-into-trust application to be approved once the application does satisfy the criteria that existed before last week's policy changes," wrote Davison, who is a veteran financial consultant.

"The Mohegan Tribe has wagered tens of millions of dollars on two future casino ventures with tribes in Wisconsin and the state of Washington that hinge on the Interior Department eventually taking off-reservation land parcels into trust for the casinos. Neither project has yet to reach the point where its application is complete but the new guidelines, which stress local government support, could further hamper their efforts," Davison wrote. "The Interior Department did not rule on the casino project between the Mohegans and the Menominee Tribe of Wisconsin, however, an application from the Lac du Flambeau Chippewa tribe of Wisconsin was denied in which the tribe sought to build a casino in southeastern Wisconsin, 308 miles from their reservation. The Kenosha casino would be about 200 miles from the Menominee reservation."

Evan Zeppos, spokesman for the Kenosha project, noted that Davison's viewpoint does not represent the official viewpoint of the Mohegan Tribe.

Zeppos said he remains "cautiously optimistic" that the Kenosha project ultimately will gain federal approval.

He noted the strong local support for the project. The City of Kenosha, the County of Kenosha and the Menominee Tribe each have signed an intergovernmental agreement for the plan, which also has received referendum approval from Kenosha County residents. Zeppos also cited the need for the project from the standpoint that the Menominee is the most impoverished of Wisconsin's Native American tribes.

"Ours is a very unique application. We are a very poor tribe, and we have extremely strong local support," Zeppos said.

The Kenosha project also was stung with this week's news that the Forest County Potawatomi Tribe is negotiating to offer pari-mutuel betting on off-track horse and dog racing at its casino to be expanded in Milwaukee. Off-track betting in Milwaukee would take betting customers away from the Dairyland Greyhound Park in Kenosha.

The news about the Potawatomi's plans to add off-track betting prompted the Menominee to issue a media alert, headlined, "Another Worthless Potawatomi Promise," Tuesday.

"The Potawatomi promised Wisconsin they wouldn't do it - but apparently, they've changed their minds," the Menominee's bulletin said. "The Potawatomi have decided to go back on their word to the state and offer off-track betting at their off-reservation casino in Milwaukee … It's another example of the Potawatomi using strong-arm tactics to get what they want … not a piece of the pie, but the whole pie for themselves."

However, Potawatomi spokesman Ken Walsh said his tribe negotiated the right to provide pari-mutuel betting in its 2003 gaming compact with the state.

"It's always been part of the plan. There was never an agreement not to offer it by the tribe," Walsh told SBT.

 

Steve Jagler is executive editor of Small Business Times.

Firestone and the Asphalt Paving Alliance might not come to mind when you think "green." But the significant presence of the two organizations at the recent Greenbuild International Conference and Expo in Chicago points out just how mainstream "green" is becoming.

Your probable disassociation of those two names with green also reflects a widespread challenge for those who want a greener world and more healthy living spaces.

That challenge involves the definition of green. More specifically, it involves a definition that consumers can relate to and easily understand. There are plenty of industry specification guidelines that architects, engineers, builders and developers are familiar with. But the homeowner pretty much has been left on his or her own when it comes to trying to figure out what building or home improvement products are green and to what degree of green.

For the record, Firestone Building Products Co. launched a green roofing initiative this year. (Yes, its parent corporation is the one that makes tires.) And the Asphalt Paving Alliance likes to note that asphalt is the most widely recycled product in America. That counts as green. Most of the people who attended Greenbuild this year understand that, even if not all of them are willing to live with such a broad definition.

Many of the products displayed by the 850 exhibitors at Greenbuild, however, were consumer oriented, including flooring, paint, toilets, windows and a myriad of other products. By and large, those products are purchased through retailers who have face-to-face contact with homeowners.

Those homeowners are confused, and many of the retailers that serve them have been frustrated by that confusion. We've heard that time and again from the many green retailers we deal with through the distribution side of our business, and from consumers we work with through our retail outlet. They want green definitions and guidelines to help them make informed decisions.

Our response has been Degree of Green - a program that helps retailers educate consumers and contractors on the green and healthy characteristics of home building and home improvement products. The program, which will officially be launched in January, received enthusiastic response from retailers who attended Greenbuild.

At the heart of Degree of Green is a product rating system. The judging panel, which includes Thiensville's Lyn Falk, a nationally recognized expert on green and healthy living spaces, reviews products from three perspectives: 1) the least adverse effects on human health; 2) the highest level of environmental sustainability; and 3) the least adverse effects on the environment.

That will not only help retailers educate consumers, but also allow consumers to make choices based on factors that are most important to them. Just as green building products come in varying degrees of green, consumers have varying desires and needs when it comes to green products. Some are more concerned about environmentalism while others are more concerned about personal health or the health of their families. (Products in the "green" world are most often less toxic than traditional building products. For example, "green" cabinetry, carpeting and paint do not out-gas the way traditional products do.) For others, the concern involves materials sourcing.

Each Degree of Green report describes a product, its composition, advantages and raw materials sourcing, and offers comparative data.

Retailers who participate in the Degree of Green program will not only receive an ongoing flow of rating sheets but also a full merchandising support program, including a web site that was just launched at www.degreeofgreen.com.

Industry thought leader Joel Makower asked this in a recent blog: "What will it take to bring honesty, accuracy, accountability, and transparency to the marketplace?" We believe Degree of Green is an answer to that question.

As recent national studies and the recent Greenbuild expo have shown, green is growing. Last year's expo in Denver drew 14,000 people. This year, more than 20,000 went to Chicago for the expo. Plenty of those people were from Wisconsin, as were many of the exhibitors, including Johnson Controls Inc., Johnson Diversey Inc., Marshfield Door, Super Sky Products, InPro, Kohler, Wausau Paper, Wausau Tile, Trane, Cooper Industries, FJA Christiansen Roofing (through Tecta America) and the Energy Center of Wisconsin.

Those are all established, mainstream companies that have solid green products or services.
And like those mainstream companies, the crowds at Greenbuild were pretty mainstream too. Sure, the "Birkenstock" crowd was represented at the expo. But based on the number of people with suits and ties or in corporately accepted business casual, green has certainly come of age in American business.

 

Andy Pace, CSI, is founder and president of Safe Building Solutions in Waukesha. Pace has served on the board of the Wisconsin Green Building Alliance and is a two-time president of the Construction Specifications Institute-Milwaukee Chapter. He can be reached at andy@safebuildingsolutions.com or by calling 800-697-5371.

Former Federal Reserve Chairman Alan Greenspan admitted earlier this month that he was caught by surprise by the subprime mortgage collapse and the depths of the credit crunch and the housing bubble.

Greenspan said he never saw it coming.

But Bob Chernow did. Chernow, a Milwaukee businessman, has more than 30 years of experience as a stock broker, a wealth manager and a futurist.
In a keynote speech about the future of the financial services industry during a conference held by the World Future Society in Toronto in July 2006, Chernow predicted the subprime collapse and the mess that would follow.

"In 'hot' real estate markets, many buyers avoid mortgage insurance because lenders encourage them to take out second mortgages as down payments. These second loans have higher interest rates and are often adjustable to variable interest rates. These types of loans encourage speculation by artificially allowing buyers to stretch what they have to buy homes they normally could not afford," Chernow told the Toronto conference last year.
"According to the Federal Reserve, 35 to 40 percent of all recent mortgages were interest-only variable loans. This type of mortgage allows buyers to buy homes when prices are inflated. It is interesting that the last time interest-only and balloon mortgages were popular was during the 1920's. This was a major reason that banks became insolvent during the Depression and was a reason why amortized mortgages were created, as these types of mortgages let buyers pay down principal.
"What is wrong with interest-only mortgages? Well, for one, the homeowner has no economic stake in the property. He can walk away if he cannot pay. He is, in essence, 'leasing' the home in the hope that property values will increase. This is the 'greater fool' theory of investing. What's that joke? If you don't see a greater fool, look in the mirror. Regardless of what the new bankruptcy law dictates, banks will be hard-pressed to collect on much of this debt."

Fast forward to today, with soaring mortgage foreclosures, skyrocketing late payments, home builders and home lenders going out of business and financial institutions tightening their credit standards. The U.S. Department of Commerce reported Thursday that the national median sales price of homes fell 7.5 percent compared with last year, the largest year-over-year decline in 37 years.

If you've got a home on the market right now, you're feeling the pain.

So, what's next?

I asked our resident futurist, who manages other people's money, to give us five new predictions. A short while later, he e-mailed his response. Here's what Chernow sees in his crystal ball:

1. "The lack of regulation and oversight in the hedge fund arena will lead to a major blow-up within the year. In great part, this is because hedge fund leverage is dramatically different than regulated brokerage firms."
2. "A coalition of Syria-Iran-Turkey and the United States will work to stabilize Iraq. This will occur after the 2008 elections, but preparatory work is already underway (Mr. Chernow, a Vietnam War veteran, delivered a talk in 2003 titled, 'The Nature of Terrorism & Advice on Combating It in the Future.')"
3. "Demographic shifts in our population will continue the move from the suburbs to the cities. Milwaukee's population should increase by 10 to 15 percent over the next decade. According to David Pierce Snyder, a leading futurist, one of the fastest-growing industries over the next decade will be the conversion of industrial and commercial properties to residential properties."
4. "Over the next decade, there will continue to be a movement to reduce the cost of health care through technology. This will be true, despite the fact that there will be a shortage of 1 million nurses by 2010. Note: I also predict that nurses will get more control over their schedules and training and that doctors and administrators will change their view of the nurse-doctor relationship to a more positive one."
5. "The manner in which education is dispersed, as well as the purpose of education, will change dramatically. Technology, practical exercises, computer games, lectures through the Internet, the place of corporations and the involvement of families in the education of their children will all combine to reduce the cost of education. (Chernow is part-owner of The Learning Connection, an early childhood learning company located in Florida & New York)."

Thanks, Bob. I'd like to add one prediction of my own: The 2008 U.S. presidential election will be the filthiest, most disgusting election of all time. Special interest groups on both sides will spend more money than the candidates and will drive the agenda. Half-truths and outright lies will be rampant. To save our democracy, it's time to rebuild it from the bottom up.

Steve Jagler is executive editor of Small Business Times.

My wife, Carole, and I opened the first Crate & Barrel store in 1962. We've since opened over 150 stores around the country. In addition to outfitting our stores with merchandise like wall hangings, floor coverings and tabletops to suit regional tastes, we had to equip our stores with their walls, floors and rooftops as well.

In every instance where we have built a new store we have done the design and construction management in-house. Not only did we develop relationships with designers and manufacturers for our products, we were able to work with contractors and tradespeople throughout the country on our buildings.

Since each Crate & Barrel is designed for its particular site, there are hundreds of details to be decided as we build stores that are distinctive, efficient, economical and enduring. To say there is a learning curve involved is an understatement.

Building anything is a full-fledged education in itself.
Fortunately, Carole and I have a place of inspiration near our weekend home and I would recommend it to anybody who is in the construction business or works in a building trade.
Known as Old World Wisconsin, and located in Eagle, about 30 miles west of Milwaukee in Waukesha County, it is America's largest outdoor museum of farm and village life. With its 65 historic structures filled with 50,000 artifacts spread in ethnic villages over 570 acres, you can see how the place would be of interest for those who construct today's buildings.

I think anybody interested in construction would be immediately struck by the countless ways our immigrant ancestors adapted to life in pioneer Wisconsin.

I mentioned earlier how Crate & Barrel avoids a cookie-cutter approach and builds its stores to account for regional tastes and environments. In the store we opened at Mayfair Mall in 2005, we used local stone for interior and exterior architectural elements, oriented the building's details for best solar and thermal efficiency and used Wisconsin prairie plants in the landscaping, both as a foundation planting and in a roof garden. I can find these materials today from a dizzying variety of sources, whether local or from around the globe. I can get them delivered more-or-less on demand and assembled by the most efficient, safety-minded and productive workforce known to history.

Old World Wisconsin, my place of inspiration, gives us a picture of the much different reality the pioneer settlers faced. They were forced to use the materials and tools they had on hand. At the same time, both novice and skilled tradesmen were usually constrained by techniques they had brought from their homelands - for better or for worse.

The earliest settlers, fairly prosperous and from New York and New England, could build their economical saltbox houses and frame storefronts of durable virgin timber. Polish or Finnish immigrants who succeeded them on this cutover land were sometimes obliged to build with stumps a German settler would find unfit to burn. The Kruza Stovewood House, relocated to Old World Wisconsin from Shawano County, is an excellent example.

Buildings like these and the exigencies that caused them to be built in their particular manners can entertain the visitor for hours. One example shows how a 19th century building product developed in Wisconsin found its way back to the original Old World - where it is still used today.

The Grube barn, formerly of Dodge County and now at Old World Wisconsin, provides an example of a lost building form here. Its thatch roof ties the past to the present and the Old World to the New World in a most remarkable fashion.

The first Pomeranian settlers arrived here in 1839 and roofed their buildings with thatch. It was a material they were familiar with, and it was accessible before the days of mass-produced shingles.

It seems that during the latter part of the 19th century, the University of Wisconsin, already a leading research institution, began developing wheat strains for possible commercial production. One batch was rejected by these early food scientists - it produced only negligible amounts of grain, borne on minuscule heads on long, tough stalks.

But those stalks, it turned out, were perfect for thatch, and could produce a roofing material that would survive for 30 harsh Wisconsin winters.

Alas, Wisconsin builders had already replaced thatch with readily available wood shingles, but that wasn't the case in Europe, particularly England, where thatched roofs are still commonplace. The Wisconsin product proved as suitable as or even superior to the wheat strains that had been used there for centuries.

Then, in 1990, the old Grube barn was due to be re-roofed. Since that skill had not persisted locally, thatchers were imported from England. They brought with them their tools, their skills and their experience working with Wisconsin-bred thatch. Their Old World-meets-New World roof still protects the Grube barn at Old World Wisconsin and is just one of the many fascinating details you are free to experience at this magical spot. Won't you make a point of visiting this year?

You might want to bring your company along! Old World Wisconsin is a great teacher, inspiration and morale-booster.

Gordon Segal is the founder and chief executive officer of Crate and Barrel, a nationwide retailer of domestic goods and furnishings. For additional information about Old World Wisconsin, visit www.wisconsinhistory.org/oww.